Humana and WellPoint Slide After Reporting Lower Quarterly Profit

by TheStreet
1:28 mins

Humana and WellPoint Slide After Reporting Lower Quarterly Profit

by TheStreet
1:28 mins

Shares of Humana and WellPoint are falling in Wednesday's trading after both health insurers reported lower second-quarter profit, despite significant revenue growth. Humana reported net income that fell 18% to $344 million, or $2.19 a share, in line with analyst estimates. The company attributed the decline to investments in the exchanges created under healthcare reform, as well as drug costs. However, Bank of America Merrill Lynch analyst Kevin Fischbeck said Humana's results actually beat his estimate by 36 cents a share. WellPoint's ajusted earnings came to $2.44 a share, topping analyst expectations of $2.26 a share. J.P. Morgan analyst Justin Lake, who has a Neutral rating on WellPoint, said the company's commercial operating earnings and government outperformed his estimates.